Brian Como's blog post on The Government Bailout starting me thinking about our ailing housing market.
We are having an awful time getting showings on our listings, let alone real bonafide offers (the ones that aren't 60% off asking and using grandma's feather bed as a downpayment). How about the Government give $20,000 down payment interest free loan to any buyer purchasing a primary residence. The conditions would be that the loan be paid back when the home sells, the buyer puts in at least 5% down, and total down payment be minimum of 10%, preferably 20%, and buyer cannot take money out of the home with a HELOC or 2nd. Refinance allowed, but no money out.
I think this would motivate all those buyers sitting on the fence to get out there and buy, which would help our housing market tremendously. Should not be limited to first time buyers. There are plenty of people out there who lost their homes and people who can't buy in another area because their homes haven't sold.
NO MORE 91%-100% down loans. If people can't save up a down payment, they have no business buying a home. They need to prove that they can manage their money first! Americans have to STOP thinking like the government, spending money they don't have!